How does CSRD differ from previous sustainability reporting frameworks?

The Corporate Sustainability Reporting Directive (CSRD) represents a major evolution in EU sustainability reporting, replacing and expanding the earlier Non-Financial Reporting Directive (NFRD). While the NFRD applied to a relatively small number of large public-interest companies, the CSRD dramatically broadens the scope and introduces far more detailed and standardized reporting requirements.

One of the most significant differences is the number of companies covered. Under CSRD, tens of thousands of additional organizations — including large private companies, listed SMEs, and eventually non-EU companies with substantial EU operations — must report sustainability information. This shift ensures that ESG data becomes a fundamental part of corporate transparency across the European market.

CSRD also requires companies to report according to the European Sustainability Reporting Standards (ESRS), which define a highly structured and detailed framework for disclosing environmental, social, and governance performance. This marks a shift from the more flexible reporting practices permitted under NFRD to a rigorous, standardized format designed to enable consistency, comparability, and deeper insights for regulators, investors, and stakeholders.

Another key difference is the introduction of mandatory third-party assurance. While NFRD allowed for more discretion, CSRD requires companies to have their sustainability information independently verified. This enhances the reliability and credibility of ESG data and aligns sustainability reporting more closely with financial reporting standards.

CSRD also places stronger emphasis on value chain transparency, requiring companies to collect and disclose Scope 3 emissions and other upstream and downstream impacts. This adds complexity but also significantly improves the completeness of sustainability assessments.

How Sustamize supports the transition from NFRD to CSRD

Sustamize provides tools and data solutions that help companies meet CSRD requirements efficiently by offering:

• automated sustainability and emissions data collection,
• verified CO₂e datasets aligned with ESRS, ISO 14067, and the GHG Protocol,
• PCF calculation tools that support lifecycle-based reporting,
• standardized, audit-ready data structures that simplify external assurance,
• streamlined workflows to reduce the administrative burden of CSRD compliance.

With sustamize, businesses can navigate the increased complexity of CSRD, improve reporting accuracy, and confidently meet regulatory expectations.

Ready to upgrade your sustainability reporting for CSRD?

Contact our team or request access to sustamize’s reporting and data tools to build a scalable, compliant, and audit-ready CSRD framework.